9501 - Application and effect of chapter.
PART V BUSINESS TRUSTS Chapter 95. Business Trusts Enactment. Part V was added December 21, 1988, P.L.1444, No.177, effective October 1, 1989. Prior Provisions. Former Part V (Reserved) was added November 15, 1972, P.L.1063, No.271, and repealed December 21, 1988, P.L.1444, No.177, effective October 1, 1989. CHAPTER 95 BUSINESS TRUSTS Sec. 9501. Application and effect of chapter. 9502. Creation, status and termination of business trusts. 9503. Documentation of trust. 9504. Registered office. 9505. Trustees. 9506. Liability of trustees and beneficiaries. 9507. Foreign business trusts. Enactment. Chapter 95 was added December 21, 1988, P.L.1444, No.177, effective October 1, 1989. Cross References. Chapter 95 is referred to in section 102 of this title; section 711 of Title 20 (Decedents, Estates and Fiduciaries); section 501 of Title 54 (Names). § 9501. Application and effect of chapter. (a) General rule.-- (1) Unless the context clearly indicates otherwise, this chapter shall apply to and the words "business trust" in this chapter shall mean an association organized as a trust: (i) Hereafter established under the laws of this Commonwealth. (ii) Whose deed of trust or other organic document states, by amendment or otherwise, that the trust exists subject to the provisions of this chapter, in the case of a business trust heretofore established under the laws of this Commonwealth or heretofore or hereafter established under the laws of any other jurisdiction. (2) The words "business trust" in this chapter shall not include: (i) A trust contemplated by section 1768 (relating to voting trusts and other agreements among shareholders) or any similar provision of law. (ii) A trust for creditors. (iii) A mortgage, deed of trust or other indenture or similar instrument or agreement under which debt securities are outstanding or to be issued. (iv) A trust for the benefit of one or more investors with respect to a lease of real or personal property, unless the instrument creating the trust is filed under this chapter. (b) No franchise.--This chapter shall not confer on a business trust the power to engage in any activity that may be undertaken only in corporate form. (c) Effect on taxation.--This chapter is enacted to codify and clarify certain common law principles applicable to business trusts and is not intended to affect the liability of any business trust to any tax. A trust that is subject to this chapter shall not be deemed to be organized or created by or under this or any other statute or to have the benefit of any state franchise for the purpose of existing law relating to taxation. (d) Multistate application.--It is the intent of the General Assembly in enacting this chapter that the legal existence of business trusts organized in this Commonwealth be recognized outside the boundaries of this Commonwealth and that, subject to any reasonable requirement of registration, a domestic business trust transacting business outside this Commonwealth be granted protection of full faith and credit under the Constitution of the United States. (Dec. 19, 1990, P.L.834, No.198, eff. imd.; Dec. 7, 1994, P.L.703, No.106, eff. 60 days) 1994 Amendment. Act 106 added subsec. (d). 1990 Amendment. Act 198 amended subsec. (a). 1994 Partial Repeal. Section 42(c) of Act 48 of 1994 provided that subsection (c) is repealed to the extent that it would affect any tax imposed under Articles III, IV and VI of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, for any taxable year beginning on or after January 1, 1995. Cross References. Section 9501 is referred to in section 161 of this title.